Minority Backs Fuel Tax Reduction, Demands Accountability on GH¢1 Levy Proceeds
The Minority in Parliament has endorsed the government’s decision to reduce the tax component on petroleum products but is calling for greater accountability in the management of proceeds from the GH¢1 fuel levy.
The policy intervention comes at a time when global crude oil and gas prices are trending upward, largely influenced by heightened geopolitical tensions in the Middle East.
As part of the measure, selected taxes and levies on fuel products are to be suspended for an initial four-week period, after which a review will be undertaken based on prevailing market dynamics.
Deputy Ranking Member of Parliament’s Energy Committee, Collins Adomako Mensah, described the decision as a positive move, but indicated that specifics of the implementation remain unclear.
“It is welcoming news, although we have not been given specific details as to which levies or taxes or margins will be taken off or suspended. The Minority welcomes the attempt by the government to cushion the Ghanaian people,” he said.
While expressing support for the intervention, Mr Adomako Mensah raised concerns about the absence of clarity surrounding the GH¢1 fuel levy, which was introduced to support the energy sector.
He stressed that the enabling law requires government to regularly brief Parliament on the total inflows from the levy and how the funds have been utilised.
“The law stipulated that government was to report to Parliament by the 31st of March as to how much had accrued to the fund from the GH¢1 and how it has been used,” he remarked in an interview.
According to him, that statutory obligation is yet to be met.
“Up till now, that has not been presented to Parliament. We are not too sure how much has come and how it has been used,” he added.
